Limburg short chain sales largest in the Netherlands

Dutch agricultural companies derive about 1.5 billion euros in turnover from so-called short chain sales, according to CBS figures for the period from the second quarter of 2019 to the first quarter of 2020. The number of farms deriving turnover from short chain sales increased from 10.5 percent in 2017 to 13.7 percent last year. The province of Limburg, where one in five farms engages in these so-called short-chain sales, is the leader in the Netherlands.

Short chain

According to the definition of the CBS, short chain sales can take two forms: directly on the farm or via one intermediary. In the latter case, the sale takes place via one intermediary link, for example via the catering industry, a garden center or retail. The form with an intermediary link is the largest with 1.2 billion euros, while direct farm sales had a turnover of 0.3 billion euros.

Of the various sectors, ornamental horticulture is the one with the highest short-chain sales (€586 million), followed by food horticulture companies (€398 million) and dairy farms (€182 million). Arable farms (108 million euros) and laying hen farms (56 million euros) have the lowest short-chain turnover.

It's going to be interesting to see how the corona crisis is going to change the numbers. Initiatives like Support Your Locals and Local7 have boosted short-chain sales, especially direct sales. The impact of the corona pandemic has not been determined as yet, as current figures do not go beyond the first quarter of 2020.

Maastricht leading the way

During the last agricultural census (reference date April 1, 2020), there were about 52.7 thousand agricultural enterprises in the Netherlands. Of these, 7.2 thousand (13.6 percent) generated turnover from short-chain sales. In 2017, this was still 5.7 thousand agricultural enterprises (10 percent). Municipalities with many companies in floriculture and food horticulture such as Westland (130 companies), West Betuwe (89 companies), Horst aan de Maas (87 companies), Alphen aan den Rijn (68 companies) and Zundert (67 companies) immediately stand out.

In the province of Limburg, 3,659 farms are counted, of which 731 engage in direct home sales. With this 20 percent, Limburg is the province with the highest percentage of short chain sellers. Of these farmers, 568 sell directly to consumers and 355 through an intermediary. Maastricht leads the Limburg ranking. There, 12 of 38 farmers sell (almost) their products through the short chain. That amounts to 31.6 percent. Venlo follows closely with 31.3 percent. Maasgouw is in third place with 30.8 percent.